FISG Daily Market Wrap 25th August

Tech Rebound Gains Momentum as Bitcoin Tops $80,000 Ahead of Nvidia Earnings

Global markets adopted a more constructive tone on Tuesday as selling pressure across technology stocks eased, lifting US equity futures and helping stabilize broader risk sentiment. Investors are now turning their attention to a crucial week of corporate earnings, with Nvidia’s results on Wednesday expected to provide a major test for confidence in the artificial intelligence trade. US Nasdaq 100 futures rose around 0.4% after the underlying index declined almost 1% on Monday as semiconductor stocks came under heavy selling pressure. European equities were also positioned for a stronger open, while MSCI’s Asia Pacific benchmark recovered from an earlier decline of as much as 0.7% to trade broadly flat. The stabilization followed a sharp selloff in semiconductor stocks on Wall Street, with a sector gauge falling to its weakest level since July. Nvidia extended its longest losing streak since 2022 as investors reduced exposure ahead of Wednesday’s earnings report. The results and subsequent market reaction could determine whether the recent technology rebound continues or whether renewed selling pressure returns to the chip sector. Bitcoin provided another positive signal for risk appetite, climbing above $80,000 for the first time since May. The move extends its recent recovery after several months of weakness and suggests that appetite for higher-risk assets may be gradually returning. In fixed income, investors remained focused on the US Treasury’s recent intervention in the bond market and the broader implications for US fiscal policy. Concerns over widening deficits continue to weigh on the Dollar and keep interest-rate markets sensitive to any changes in expectations for Federal Reserve policy. For now, corporate earnings are likely to remain the more immediate driver of market positioning. In commodities, Brent crude recovered part of Monday’s decline, rising 0.3% to around $92.45 a barrel. Oil remains supported by renewed US economic pressure on Iran and threats of penalties against countries continuing to do business with Tehran, developments that could limit supply and maintain a floor under energy prices. At the same time, tighter energy conditions could complicate the inflation outlook faced by central banks. Gold, meanwhile, surrendered its earlier gains and fell 0.4% to around $4,635 an ounce after reaching its highest level since May. The precious metal continues to benefit from concerns surrounding US fiscal deficits and the Dollar, although today’s decline reflects some profit-taking following its recent advance. The Canadian Dollar remained broadly stable as Canadian officials prepared to announce their response to the latest US tariffs. US-Canada trade talks reportedly collapsed following last-minute pressure from Commerce Secretary Howard Lutnick, prompting President Donald Trump to impose new tariffs. Prime Minister Mark Carney has pledged retaliation, with Ottawa expected to announce measures aimed at protecting Canadian workers and businesses following the 50% US tariffs imposed on around $20 billion of annual Canadian exports. In Australia, the Reserve Bank kept its key interest rate unchanged, citing signs that elevated inflation was gradually easing while the labor market was beginning to loosen. The decision gives policymakers additional time to assess incoming economic data and determine whether inflation risks are becoming more persistent. Oil markets remain closely tied to developments surrounding Iran and the Strait of Hormuz. The US has intensified economic pressure on Iran and its trading partners in an effort to encourage the resumption of energy flows through the strategically important waterway. Any disruption to the region’s energy supply could create renewed upside risks for crude prices and complicate the inflation outlook globally. Elsewhere, an Al-Arabiya source reported that Pakistan’s Army Chief Asim Munir is carrying an offer to Iran involving a halt to the siege and the lifting of sanctions under a memorandum of understanding. If confirmed, developments around the proposal could become an important geopolitical catalyst for energy markets, particularly given the sensitivity of oil prices to tensions surrounding Iran and the Strait of Hormuz. Overall, markets are showing tentative signs of stabilization after Monday’s technology selloff. The immediate focus is now firmly on Nvidia’s earnings, which could determine the next direction for the AI trade and broader equity sentiment. At the same time, US fiscal concerns, trade tensions, Iran-related geopolitical risks and shifting central-bank expectations remain key drivers across bonds, currencies and commodities. FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.